fox news sunday is a presentation of fox news. this week on "the journal editorial report" obama care marches on, despite an apology for the rollout debacle, and growing outrage over millions of dropped policies. president obama says it's full steam ahead for the controversial law. plus, new nsa leaks pit the spy agency against the administration. did the white house okay the surveillance of our allies? all that, and our election preview from new jersey, to virginia, to colorado, a look at what's on the ballot this tuesday. >> i am as frustrated and angry as anyone with the flawed launch of healthcare.gov. so let me say directly to

americans, you deserve better. i apologize. >> welcome to "the journal editorial report" i'm paul gigot. an apology from health and human services secretary kathleen sebelius who acknowledged before congress this week that the rollout of president obama's affordable care actdebacle. but despite the website woes and growing outrage over millions of dropped policies, president obama says it's full steam ahead. >> yes, this is hard. the health care system is a big system. and it's complicated. and if it was hard doing it just in one state, it's harder to do in all 50 states. we are just going to keep on working at it. we're going to grind it out. >> joining the panel this week, "wall street journal" assistant editorial page editor frams freeman. editorial board member joe rago and senior economics writer.

what do we learn from kathleen sebelius' appearance this week? >> not very much. i think she indicated that the website and sort of the larger architecture of the system are in much deeper trouble than we thought. hhs is not even getting accurate enrollment data -- >> we don't even know how many people have signed up. >> no, hhs doesn't know itself. >> they don't know either. >> right. i think that's why they haven't been saying. >> and we decent know when it will be fixed. they promise the end of november but there's no guarantee that that will be the case. >> no. and they didn't really say which november. i think it's -- this could stretch out much longer than they're predicting. >> the other thing that's striking to me and we heard the clip from the president say we're going to grind it out. three yards and a cloud of confused technology or whatever it is. but, politically it means they're not going to bend on this. they're just going to keep driving, and no delays, that seems to be the message. >> i think so. this is the rendezvous with

liberal destiny, and they're not going to let anything dissuade them from the trek they're on, even the problems they created themselves. >> but is that creating problems for themselves? why not just delay it a rear? >> it -- well, that would be the best option, i think. but then you throw it into an election year and it gets litigated. so, all the problems we're seeing will become even more of a political issue and drag on much longer. >> and the president said, james, look, we -- he flat-out said don't worry about losing these policies. those were substandard policies. >> lousy policies. >> according to him. why they? >> yeah, this is what people are learning. they were not sub standard, at least to the people who freely chose to buy them. who thought that those policies met their needs and they're now learning that promise about, if you like it, you can keep it, really means if he likes it, you can keep it. but i think what sebelius said, we deserve better, the administration ought to think about that as it continues to grind it on, and i think also people are starting to realize

this thing may fail a lot sooner than expected, as young people decide this is not for them. >> and these -- this is a key point, i think. these policy changes, like getting rid of these policies, essentially outlawing them, if you make any tweak with the policies in the individual market, for individually purchased health insurance, this was by design. this was built in and planned. >> absolutely. this is -- this has been the plan all along. they could have created -- they could have said, look, we're creating better policies, we're giving you subsidies, if you want to stick with your -- what we consider your crummy plan, be our guest, it's your funeral. they didn't do that. they're trying to stuff as many people as possible into the exchanges as quickly as they can. >> so that's the motive here? reduce the individual market, push everybody into the federal exchanges, because they need them to finance the subsidies? >> that's partially it. and the other reason is political control. when they're defining how health care is financed, they're also

defining what kind of benefits that must be covered, what medicine actually is, and that's the other side of the coin. >> james, were you buying kathleen sebelius' i take responsibility here? >> well, i -- if the question is, would it solve much to fire her, i wonder. because this is really a barack obama production here. and but i do think a vulnerability at that hearing, she gave that november 30th date, and mike rogers the congressman said you need two months to make sure it's secure, to do the testing. this is another problem as they try to convince young people to buy uneconomic policies that they're now saying is your data even going to be secure. so i think this thing could unravel very quickly if young people don't sign up. >> steve, what's the political response here? particularly from the democrats, and the senate? are we seeing them begin to get nervous about this, and any breaks with the administration? >> welt, you know, we are, paul, at least in congress, not in the

administration, and that's because, you know, i think the website problems have been almost a distraction to the real problem here, which is this is trying to sell the american people on the edsel. they're looking at the product now. they're finding that their losing what they want, the insurance they want, and being forced into something that for millions of americans will be more expensive. what you're seeing now is a lot of what we call the red state democrats who are getting very nervous about what the political impact of this will be. you know, there's some people who think even on tuesday's elections, in some of the states, it might be an issue, because people are just hopping angry about the product that is being forced upon them. >> do you think in the end -- i mean the real danger here for the administration in implementing this is if you get a group of eight or nine senate democrats who break off and say, look, we insist on a delay of a year. something like that. is there any sign that they're going that far yet? >> not quite yet, paul. but i am going to predict that there will be a huge groundswell of support not just in the senate, but some of the house

democrats, as well, saying you know, we can't live with this. we're going to have to put this off until after the midterm elections which would mean a one-year delay. >> joe, is there an opportunity here for republicans to cut in here and maybe offer an alternative that's better? >> right. you would think so. look, there's the flaws and problems with this program are real, but this program is also creating an opportunity for them to offer a genuine reform alternative. saying, look, you have these choices before. here's what we want to do, x, y, z to give you those choices back. >> expanded choice, expanded doctor choices and all of that. thank you. when we come back, the nsa controversy grows. as a new round of leaks that the spy agency against the white house over who knew what about our overseas intelligence operati operations. [ coughs, sneezes ] i have a big meeting when we land, but i am so stuffed up, i can't rest. [ male announcer ] nyquil cold and flu liquid gels don't unstuff your nose. they don't? alka seltzer plus night fights your worst cold symptoms, plus has a decongestant. [ inhales deeply ]

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fresh leaks pit the spy agency against the obama administration over who knew what about the surveillance of world leaders, and as members of congress demand an investigation and possible curtailment of the collection of foreign intelligence. we're back with joe rago, "wall street journal" editorial board members, mary anastasia o'grady and matt kamensky also joins the panel. so, mary, are you buying the claim that the white house has offered that the president didn't know that the nsa was listening in on world leaders? >> you know, paul, if the president didn't know, the u.s. is even in worse shape than we thought all along. i mean, first of all, the nsa, everything they do is supervised. this wasn't some rogue operation. this is what they do. and you know, a lot of the data we get from europe is collected in this way. >> well, by -- and also collected -- >> with the help of the europeans, yeah. so the idea that he didn't know

about this suggests that he's either not being truthful, or not doing his job, at all. >> yeah, the implication of that, and this idea that the nsa is somehow a rogue agency, like in a hollywood film where they just got all these people going out on their own and listening to whoever they feel like just because, well, it feels good, and we can do it so we will do it. that's not really plausible. >> the nsa came out this week on wednesday hearings with the head of national intelligence, and head of nsa and saying first of all, everything we do, we get guidance from the white house. and yes, you can always say this was -- this information came from this, it's something as important as we got it from the chancellor of germany angela merkel that would be fairly clear to the president when he's being briefed. >> so there's some discussion now that what should happen is we have, the united states has, an agreement with five countries, britain, canada, australia, new zealand and the

united states, five countries, that we don't spy on each other and they share intelligence. now people are saying we should include germany and france in that five group of five and make it a group of seven. you agree? >> no. the germans, and france want to go there. but it's a special relationship that we've had with the english-speaking world that's built up over decades of trust. we compete with france on things and with germany. i mean, the worst thing about this, and is that we created a political problem for chancellor merkel, and the french, having this come out. >> inside germany. >> they actually don't -- i mean i'm sure they know this was going on. but once the documents came out they had to deal with it politically at home. >> what should they do to handle that? how could we help them at home? >> well, i'd prefer the kind of the sorts of things that senator feinstein is suggesting, which really aren't major changes in the way that the policy would work. i mean, the fact of the matter is, everybody spies.

i mean the french intelligence, former french head of intelligence came out last week and said, what are you talking about? everybody's been doing this? helmet schmidt said when he was chansz lore of germany he assumed that he was being spied on. this has been going on since the cold war. so basically, yes, maybe we should provide some cosmetic cover in order to help, for example, mrs. merkel regain some trust in the relationship with the u.s. beyond that, i don't think we should do anything. >> dianne feinstein being the chairman of the senate intelligence committee. and she's moving some legislation to put some -- she says a review of all of these things. there's also a report this week, joe, that the nsa was spying, breaking into google and yahoo! networks overseas. not domestically, but overseas. and the companies themselves this week are up in arms about that. >> they are. but you have to remember, these are -- these were caps overseas, purely foreign to foreign

communications. you know, when the snowden documents started to come out -- >> snowden being the leaker. >> edward snowden being the leaker. we were talking about domestic spying and snooping on americans. here you have purely foreign intelligence and suddenly that's a crime as well. it's kind of an indication of the moving goalpost. >> domestically the political back lash. there are -- >> against the nsa -- >> there's sensenbrenner in the house -- >> especially when there's legislation to stop the nsa from data collection, let the aclu basically argue why certain things shouldn't be done. and to really handcuff our intelligence services the way that it happened in the 1970s, which indirectly led up to our failures that led to 9/11. >> how big a danger is that, mary? >> well, it's, i think it's possible that, you know, you're going to get some momentum. but it's incredibly naive. i mean, you know, is this -- if

the u.s. stops doing this, then it woen be happening anymore. basically if the u.s. stops doing it then the only ones doing it will be the chinese, the russians, you know, the brazilians, the cubans. and probably the germans and the french. you know, the idea that by banning the u.s. from doing it you can somehow stop the spying worldwide is crazy. >> all right. mary o'grady, thank you. when we come back our election-day preview from a pair of high profile governors races, to some controversial ballotmakers. we're tell you what's at stake in your state on tuesday. [ male announcer ] this is the age of knowing what you're made o why let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pai it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away,

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this tuesday as voters in new jersey, and virginia, give us a glimpse of the political landscape heading into 2016. but, ballot measures across the country are also generating their share of controversy, including a constitutional amendment to raise the minimum wage in the garden state, and another in colorado that would increase taxes by $950 million in one year and restructure the way that state funds its public schools. we're back with james freeman, and steve moore. so steve let's go to colorado first because it's a very interesting state, trending left politically, with a kind of new coalition of cultural liberals and hispanics. and women. leading to a democratic majority there. and they could take another big step to the left with this ballot initiative. explain. >> no question about it. paul, you're exactly right. colorado is one of those states that has moved more to the left than just about any other state in the country. and partially because of huge democratic money and liberal

money that's gone in to that state. so what they've now put on the ballot is a gigantic income tax increase to pay for more money for schools. this is a big power play by the left to expand the size of the state government. the income tax, if it's raised, paul, would get rid of a traditional policy in colorado of a low flat tax. and i would make the case, one of the reasons colorado has been a high growth state over the last 30 years is precisely because they've had a very, you know, sound economic tax system. that's in jeopardy now. >> the flat tax is 4.6% or so on. all income levels. but if this passes it would move up to five or certain taxpayers and then 5.9% i think it is for people above $75,000 a year. but then, what's happened in the states that get rid of the flat tax, is it makes it easier to raise taxes again and again. >> right. just ask people in illinois, or ask people in states like new jersey and new york. you're exactly right. it won't be long before that

rate goes up to 8%, 9% or 10% in my opinion if they pass this resolution. i don't think it's going to pass. i think the people in colorado are going to vote it down. >> if i could add, paul, what all this money is supposed to fund is more pre-k and full-day kindergarten. the evidence is not there that this improves educational outcomes. even the department of education's own study on head start showed a lot of these early investments don't pay off. >> let's turn to new jersey, where you are, a voter, james, and chris christie the republican governor looks like he's going to coast to re-election. but there's an interesting ballot initiative that would embed, raise the minimum wage and embed future minimum wage increases into the constitution. >> right. into the state constitution. it's knocking the state minimum wage up above about a point above the federal one going to about 8.5%, or excuse me $8.25 an hour i should say. this is really, when you look at young people, and their struggle to find work in new jersey, this is about the last thing we need.

the -- our state has a higher unemployment rate than any other our anybodies, pennsylvania, new york, delaware, and really high, above the national average. so now you're taking that group of people that wants to come into the workforce, that want skills, that wants to show they can do a job, and you're making it that much harder for small businesses to hire them. >> steve, let's turn to virginia. which i believe is your state. and you've got that governor's race, and the republican ken cuccinelli looks like he might have a chance. he's moving closer to terry mcauliffe, the democrat, who's had a comfortable lead. could he pull this out? >> you know, if you'd asked me that last week, i would have said no way. but what's happening in this race, interestingly enough, i talked to ken cuccinelli late this week. and he told me that their polls are narrowing. that's what any politician will tell you. but what he's telling me is the number one reason that he's closing that gap is one word, paul, obama care. this has become a big issue in

this state race because terry mcauliffe is all in for obama care, the attorney general ken cuccinelli is against it. so it's interesting how that obama care issue may have a big impact on a big state race on tuesday. >> interesting. can obama care trump the earlier shutdown problems? >> exactly. >> ken cuccinelli in northern virginia which provides about 30% of the statewide vote. now in new york city, quickly, in the mayor's race, fascinating decision here by secretary circuit court of appeals throwing -- putting a stay on the ban on stop and frisk that a lower court judge had imposed. and throwing the judge off the case. could that complicate things for the front-runner bill deplace yo who is running for mayor and has opposed stop and brisk? >> it's going to certainly force him to say whether or not he thinks the police ought to be able to do their jobs. to this point he's been able to say, a judge has spoken. now that judge has been basically repudiated by a higher level of the judiciary. the hope here is that police are

going to be able to continue to do constitutional searches. >> all right, james. we'll be watching all these races. we have to take one more break. when we come back, hits and misses of the week. we have to take one more break. when we come back, hits and

time now for hits and misses of the week. matt, first to you. >> some good news for frequent flyers. the federal aviation administration committee decided you can keep your phones and your kindle, your ipad on takeoff and landing. one less hassle in flying, which raises the obvious point, when are we going to get rid of the tsa? >> oh, joy. i get to listen to more cell phone conversations. >> there you go. >> this is a miss for brown university, which hosted police commissioner ray kelly this week. he went there to give a talk on pro-active policing. students booed and heckled him

until he had to leave. he was not able to give his talk. there was a time when a university like brown was considered a liberal institution, which tolerance for ideas other than their own. those days are over. i think this is very sad. >> used to be liberal in the best sense of that word. and now it's the worst. james? >> i guess this is a hit. admiring the savvy of those political operators at goldman sachs who, of course, had a lot of alums and friends in washington during 2008, helped them get bailouts and now we find that on their payroll hillary clinton as well as mrs. ted cruz. so they've covered all the bases once again. very impressive. >> is there some irony aforethought in that? >> yes. shooting for irony. >> not such great admiration for goldman sachs in that? you got to do what you got to do. and remember, if you have your own hit or miss, please send it

to us at jer @foxnews.com. that's it for this week's show. thanks to my panel and all of you for watching. hope to see you right here next week. welcome to "america's news headquarters." new developments on the shooting rain page at los angeles international airport that left one tsa agent dead. the accused gunman now charged with the murder of a federal officer. police say he shot the agent at poinblank range before opening fire on the crowd. and then, returning to shoot the agent yet again. at least five other people injured in friday's shooting. 23-year-old paul ciancia could face the death penalty if convicted. investigators saying he had enough firepower to turn the entire place into a killing zone.